UPDATE 1-Bombardier has letter of intent for 30 C-Series jets

December 19, 2012|Reuters

* Order for 12 aircraft would be worth $870 mln

* Options for 18 more jets would bring deal to $2.08 bln

* Bombardier shares rise nearly 1 pct on TSX

Dec 19 (Reuters) - Bombardier Inc, the world's No.3 planemaker, said on Wednesday that an airline based in theAmericas has signed a letter of intent to buy 12 C-Series jets,with options for another 18 aircraft.

A firm contract would be worth $870 million, or up to $2.08billion if all of the options were exercised.

Montreal-based Bombardier, which delayed the first flight ofits new C-Series jetliner in November, has seen sluggish demandfor the aircraft to date. The six-month delay, caused byproblems with suppliers, raised questions about Bombardier'sability to deliver the plane, a $3.4 billion development effort,on time.

Bombardier said that wings for the first C-Series flighttest vehicle are now being mated to the fuselage at its finalassembly facility. Assembly is "progressing smoothly" in advanceof the first flight, planned by the end of June 2013, thecompany said.

An instrumentation and loading system is being finalized,Bombardier said, for the start of airframe tests in January.

Shares of Bombardier added 3 Canadian cents to C$3.58 on theToronto Stock Exchange on Wednesday afternoon after theannouncement.